An expected reach of over 180 countries by getting associated with one mega sporting event... what more can a company ask for? No wonder the man driving Coca-Cola’s Global Sports Partnerships, Ricardo Fort, is on a high with the strike rate — visibility, branding, and expected volumes — of his company at the 2018 FIFA World Cup.

While holding on to the belief that any drop in sponsorship revenue should not be seen as a trend, Fort, Vice-President, Global Assets & Partnerships at The Coca-Cola Company since 2016, says it should be considered in a larger context as the content seems to be getting localised. “This World Cup is the single largest campaign that our company has ever done, bigger than the last FIFA. In the past, we have done in 150 countries; during Brazil FIFA, we did in about 170 countries; and now we are expecting in over 180 countries. It is great for our customers as they sell more, and for us as we build relationships and sell more. We engage with different constituents: NGOs, customers, and consumers,” he said.

Chatting with a group of journalists in Moscow, he said “sports marketing has grown tremendously and a lot of investments have come in... it has become a lot more professional and there is a lot more money in it. For example, in football, there are players, clubs, and Federations such as FIFA that have grown.”

Following the rule book, he declined to share the revenue numbers, but said, “At the end of the day, we are a commercial enterprise, so it has to be commercial. Our role is to get more people drinking our beverages. Going forward, there are several things we still want to do… Every time you go to a country and you meet the Prime Minister or the President, who talks about sports, that just helps the country to be more interested in bringing the spotlight on sports and makes everybody more interested in the event.”

Money inflow

What has changed for Coke since its association with the game, which started in the 1950s, and with FIFA, in the 1970s? “One of the biggest transformations in the last 15 years has been the money coming into sports marketing because of television and, now, social media…Live sports tend to capture attention; this led to a growth in the value of the sport, and money from sponsors came in; television has become a big driver for it,” he said.

And what does it mean for brand Coke? “Because they are global, they allow us to talk about the diversity in our portfolio — coke, juices, water, tea and everything else. They allow us to talk about the diversity of countries, reinforcing our global presence, which is very important for leadership, so people think about brands and they think about the presence of the brand. It also gives reassurance to the stakeholders about the brand quality,” he said.

But what about reports that sponsorship revenues for FIFA World Cup have dropped this year (the value of sponsorship has dropped by 11 per cent to $179 million in the past four years). “I look at it differently,” he said, adding that there has been a decline at the local level, but in general the growth of television money has been over 20 per cent and corporate sponsorship has grown at the same pace. What we see in markets such as North America and Western Europe is that money is coming in very fast. One example is the preparation for the Tokyo Olympic Games. Japan has raised more money than has ever been raised in sponsorships in the history of the Olympic Games: close to $3 billion,” he said.

Strategy for Asia

On the company’s Asia strategy, he says, “We look at things both globally and locally. We have strong teams working. In Asia, say, in China or India or in Australia, if the local team wants to sign a sponsorship, they can make decisions there and then.”

“My role is to ensure that they follow the process that makes things better for them. So we have contracts with celebrities, we have sponsorship in teams. What changes is how people do it,” he said. “For example, Brazil and India are two countries with pretty much one sport. So the way you associate yourself with the sport in Brazil — football — and with cricket in India is very similar.”

“But within India, in Kolkata or Goa, football is huge, and this is where as a global company we can bring our international expertise,” he said.

What do the controversies surrounding FIFA do to Coca-Cola’s image? “We are close to them (FIFA), we push them. It is important for us that football remains healthy as it is good for the company. You have to be on the sidelines and yet point out where wrong is happening. Tell them to fix it.”

“Till now it hasn’t influenced the decision-making; when we look at a partnership, we do good due diligence. In sport there is always a risk that something will go wrong because you are dealing with a lot of young stars, and there is a lot of money: that is a recipe for misbehaviour. We have been competent and fortunate to not be involved with a lot of controversies because we do our homework and are also partly luck,” he said.

But does ambush marketing still happen? “Honestly, we don’t pay a lot of attention to others as we are busy with what we are doing… Marketers are sophisticated enough not to infringe on anyone’s rights, and a lot of things which are seen in the market are not illegal, but they are immoral. When I see someone trying to get some association with an event they did not pay for, I think it is wrong. As a company we always do it the right way: we buy the rights, invest in the rights, advertise the rights and if you chose not to do so, stay away...,” he says.

(T he writer was in Moscow at the invitation of Coca-Cola India)

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